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Despite extensive global efforts, energy poverty remains a persistent issue, primarily affecting developing countries. While there have been numerous policy initiatives proposed in the academic literature to alleviate energy poverty, the potential of energy poverty alleviation through financial inclusion has received limited attention. To address this issue, this study is conducted using survey data from the Bangladesh Household Income and Expenditure Survey held during 2010 and 2016. A multilevel regression model is employed to identify the association between energy poverty and financial inclusion. The results reveal that households with financial inclusion experience significantly lower rates of acute and severe energy poverty by 13% and 33%, respectively, compared to those without financial inclusion. Moreover, to establish a causal relationship between financial inclusion and energy poverty, a propensity score matching and the Lewbel two-stage least square regression methods are employed in this paper. The findings indicate that female-headed households have a lower likelihood of severe energy poverty compared to male-headed households. Moreover, when comparing education levels within households, both males and females contribute equally to reducing energy poverty through financial inclusion. These research findings can inform policymakers in achieving Sustainable Development Goal 7 for universal access to affordable and modern energy. Role of gender in the financial inclusion-energy poverty nexus. [Display omitted] • This study investigates the gender dimensions of financial inclusion in addressing energy poverty. • Energy poverty exhibits notable disparities across different districts in Bangladesh. • A causal relationship exists between financial inclusion and energy poverty. • The study underscores financial inclusion as a significant policy approach for mitigating energy poverty. • Financial inclusion plays a crucial role in empowering female-headed households to effectively eradicate energy poverty. [ABSTRACT FROM AUTHOR]

This paper explores the impact of remittances on multidimensional energy poverty in Bangladesh by employing a nationally representative Household Income and Expenditure Survey (HIES)-2016 with a sample size of 46,080 households. Remittance is one of the sources of household income that can be utilized for energy services. Energy poverty is generally described and quantified at the household level, exposing potential household characteristics in terms of energy costs and benefits and access to energy services. Controlling for the relevant characteristics of investigated households, mixed-effect linear regression, two-stage least square, and generalized ordered logistic regression reveal that households with remittance income have a significantly lower level of multidimensional energy poverty in Bangladesh. The outcomes of this work advocate that an upsurge in remittance inflow engenders a strong contribution toward alleviating energy poverty in Bangladesh and likely in other developing nations. National programs should be established for devising policies to promote migrant workers, lowering energy costs at the household level, and investing remittance income into modern energy technologies to ensure and enhance access to clean energy sources. [Display omitted] • The link between remittances and multidimensional energy poverty is analyzed. • Multidimensional energy poverty Index is measured for Bangladesh. • Remittance inflows significantly reduce multidimensional energy poverty. • Lowering energy costs and investing remittance income into modern technologies are required to overcome energy poverty. [ABSTRACT FROM AUTHOR]

This paper examines the effect of remittance income on energy consumption and the economy between 1976 and 2019 in the four highest remittance recipient nations of South Asia. The detailed analysis explores long-run and directional relationships utilizing stationary tests, the panel cointegration test, dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS), and Granger causality tests using a Vector Error Correction Model (VECM). The study reveals the presence of long-run relationships among remittances, energy consumption, GDP and urbanization. Cointegrating regression identifies that remittance income, economic growth and urbanization individually have a positive and significant effect on energy consumption in the long-run. Results showed that a 1% increase in remittance income results in a 0.045% increase in energy consumption. Among nations analyzed, this effect was found to be strongly dominant in case of Bangladesh and Pakistan. The statistically significant and negative coefficient of the error correction term confirms long-run causality from remittance, GDP, and urbanization toward energy consumption. Variance decomposition analysis demonstrated that energy usage is heavily impacted by remittance inflows among studied variables. Policy implications of this study suggest that higher remittance inflows will increase energy consumption in South Asian countries, engendering positive economic growth and sustainable development. Image 1 • The effects of remittance on energy consumption studied for South Asian countries. • Novel statistical approaches applied to explore the causality and direction between remittance income and energy use. • Remittance income provides a potential stimulus toward national investments and ensures reliable and clean energy sources. • It is evidence that 1% raise in remittance income results in a 0.045% increase in energy consumption in the long run. • Policy makers can formulate strategic plans for migrant workers to ensure affordable clean energy. [ABSTRACT FROM AUTHOR]